No specific proposal to merge more PSBs currently under consideration: Govt
PremiumMoS Finance said the Union Finance Minister Nirmala Sitharaman had already announced the government's intent to privatise 2 PSBs
There is no specific proposal to amalgamate more Public Sector Banks (PSBs) is currently under consideration of the government, the Minister of State (MoS) Finance said on Monday.
"No specific proposal to amalgamate more PSBs is currently under consideration of the Government," the MoS Finance stated in a written reply in Lok Sabha.
"Government, after consulting RBI, approved that respective Board of Public Sector Banks (PSBs) may consider amalgamation. Bank Boards concerned considered the amalgamation and approved the same in-principle. The government, after considering inputs of RBI and in-principle approval and inputs of banks, amalgamated Vijaya Bank and Dena Bank into Bank of Baroda w.e.f. 1.4.2019 and Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Andhra Bank and Corporation Bank into Union Bank of India, Syndicate Bank into Canara Bank, and Allahabad Bank into Indian Bank, w.e.f. 1.4.2020," the statement further added.
He also said the Union Finance Minister Nirmala Sitharaman had already announced the government's intent to privatise 2 PSBs.
Sitharaman, while presenting Budget 2021-22, had announced the privatisation of Public Sector Banks (PSBs) as part of disinvestment drive to garner ₹1.75 lakh crore.
"Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22," she had said.
Meanwhile, a bill to amend the general insurance law to allow the government to pare its stake in state-owned insurers was introduced in the Lok Sabha on Friday, but Sitharaman insisted that it will not lead to privatisation. Introducing the General Insurance Business (Nationalisation) Amendment Bill, 2021, Sitharaman said its passage will help generate required resources from the Indian markets so that public sector general insurers can design innovative products.
Notwithstanding economic disruptions caused by the pandemic, public sector banks (PSBs) have managed to raise a record ₹58,700 crore from markets in FY2020-21 through a mix of debt and equity to enhance capital base.
MINT PREMIUM
See All
This included ₹4,500 crore raised by Mumbai-based Bank of Baroda from qualified institutional placement (QIP). Punjab National Bank mobilised ₹3,788 crore through share sale on private placement basis during the financial year ended March 31, 2021.
At the same time, Bengaluru-based Canara Bank raised ₹2,000 crore from QIP, as per data collated from regulatory filings.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!